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GST amnesty Scheme 2025: Take its benefit without payment of Tax

The Government of India, through the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), has introduced a GST Amnesty Scheme 2025. This scheme provides relief to taxpayers by waiving penalties and interest for certain past GST liabilities. The changes have been incorporated through Section 128A of the CGST Act, 2017, along with Rule 164 of the CGST Rules, 2017. The scheme applies to tax demands for the period from 1st July 2017 to 31st March 2020.

 

 

This article provides a detailed breakdown of the scheme, its eligibility criteria, benefits, procedural aspects, and clarifications issued by the CBIC through Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax.

 

  • Circular No. 248/05/2025-GST
  • Notification No. 11/2025-Central Tax

Key Highlights of the GST Amnesty Scheme 2025

  • New Section 128A inserted into the CGST Act, 2017, allowing waiver of interest, penalty, or both for past tax demands.
  • Rule 164 added to the CGST Rules, 2017, to provide procedural guidance for availing benefits.
  • Applicable for tax demands raised under Section 73 of the CGST Act for the period 1st July 2017 to 31st March 2020.
  • Taxpayers need to make payments using FORM GST DRC-03 or other prescribed methods.
  • The scheme is effective from 1st November 2024.

Eligibility for Amnesty Benefits

As per Circular No. 248/05/2025-GST, the following categories of taxpayers can avail of the GST amnesty scheme:

  1. Taxpayers who have already paid tax through FORM GSTR-3B
    • If the payment was made before 1st November 2024, it will be considered valid for amnesty.
    • However, payments made after this date must be through FORM GST DRC-03.
  2. Taxpayers who have pending tax liabilities under Section 73
    • They must pay their due tax to avail of interest and penalty waiver.
  3. Taxpayers who have filed appeals against consolidated adjudication orders
    • If an appeal covers periods both inside and outside the amnesty period, the taxpayer can withdraw only the portion related to the amnesty period (FY 2017-18 to 2019-20).

Procedural Requirements

The scheme specifies clear steps for taxpayers to follow in order to claim amnesty benefits:

A. Payment of Tax Liability

  • If the taxpayer already paid tax before 1st November 2024 via GSTR-3B, it will be considered valid.
  • If payment is made on or after 1st November 2024, it must be done using FORM GST DRC-03.

B. Withdrawal of Appeals

  • If a taxpayer has filed an appeal covering multiple financial years, they can partially withdraw the appeal for the period covered under Section 128A (FY 2017-18 to 2019-20).
  • The appellate authority will continue proceedings for the periods beyond the amnesty coverage.

Key Clarifications from CBIC

The CBIC issued Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax to clarify various issues faced by taxpayers:

A. Treatment of Past Payments (FORM GSTR-3B)

  • Taxpayers who paid tax via FORM GSTR-3B before 1st November 2024 are eligible for amnesty.
  • Post 1st November 2024, payments must be made through FORM GST DRC-03.

B. Appeal Withdrawal Process

  • If an appeal covers both eligible (FY 2017-18 to 2019-20) and non-eligible periods, the taxpayer needs to:
    • Withdraw the appeal for the eligible period.
    • Continue the appeal for the non-eligible period.

C. No Refund for Taxes Already Paid

  • No refund will be granted for taxes, interest, or penalties already paid before the introduction of Rule 164.
  • If a demand notice covered both amnesty and non-amnesty periods, only the eligible period gets relief.

Changes Introduced in Rule 164 (via Notification No. 11/2025)

  • Modification in Rule 164(4):
    • Taxpayers must pay tax only for the period covered under Section 128A.
    • Partial appeal withdrawal is allowed.
  • Insertion of Explanation in Rule 164(4):
    • If a demand covers both eligible and non-eligible periods, the taxpayer will not receive a refund for taxes already paid.
  • Addition to Rule 164(7):
    • Instead of withdrawing a full appeal, taxpayers can notify the appellate authority that they wish to withdraw only for the amnesty period.
Attention – Advisory on IMS
Attention – Advisory on IMS

Oct 14th, 2024

 

      • Invoice Management System (IMS) is made available to taxpayers from Today, 14th Oct, 2024. The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). Taxpayers can make use of this system to take action on the invoices reflecting on IMS from 14th Oct, 2024. The first GSTR-2B would be generated for the return period Oct’24 on 14thNovember, 2024 considering action taken on Invoice Management System. It may be noted that it is not mandatory to take action on invoices in IMS dashboard for GSTR-2B generation.

 

Thanking You,
Team GSTN

Important advisory for GSTR-9/9C

Important advisory for GSTR-9/9C

Oct 15th, 2024

Starting FY 2023-24, GST system will auto-populate eligible ITC for domestic supplies (excluding reverse charge and imports ITC) from table 3(I) of GSTR-2B to table 8A of GSTR-9. These changes in GSTR-9 and 9C for the FY 2023-24 will be available on the GST portal from today i.e.,15th October 2024 onwards.
Further, a validation utility will be executed progressively (for validation by taxpayers) to complete the auto population of GSTR-9 from GSTR-2B for Apr-23 till Mar-24.

Thanking You,
Team GSTN

GST Invoicing Rules Updated: Time Limit for RCM Invoices Effective November 2024

New GST Invoicing Rules: CBIC Introduces Rule 47A and Amends Rule 46 of CGST Rules

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 20/2024 – Central Tax on October 8, 2024, introducing key changes to the Central Goods and Services Tax (CGST) Rules, 2017. These changes will be effective from November 1, 2024, and primarily concern the introduction of Rule 47A, the omission of the second proviso in Rule 46, and amendments to the third proviso of Rule 46. These changes aim to streamline the invoicing process, particularly for transactions under the Reverse Charge Mechanism (RCM).

 

 

Key Changes Introduced

1. Insertion of Rule 47A: Time Limit for Issuing Tax Invoices

With the insertion of Rule 47A, a time limit has been set for issuing tax invoices where the recipient is required to issue the invoice. This rule primarily impacts transactions under the Reverse Charge Mechanism (RCM), where the recipient, rather than the supplier, is liable to pay tax.Rule 47A reads as follows:

“Notwithstanding anything contained in rule 47, where an invoice referred to in rule 46 is required to be issued under clause (f) of sub-section (3) of section 31 by a registered person, who is liable to pay tax under sub-section (3) or sub-section (4) of section 9, he shall issue the said invoice within a period of thirty days from the date of receipt of the said supply of goods or services, or both, as the case may be.”

This rule ensures that invoices under RCM must be raised within 30 days of receiving goods or services, thereby offering clarity to businesses regarding the time frame for compliance.

 

2. Amendment to Rule 46: Omission of the Second Proviso

The second proviso in Rule 46 has been omitted. This omission helps streamline the rules and remove any redundant provisions.

  • Before: The rule contained a second proviso after clause (s).
  • After: The second proviso is now omitted, making the rule more concise and removing unnecessary language.

3. Amendment to the Third Proviso in Rule 46

The third proviso in Rule 46 has been amended for better clarity and language structure. Specifically, the phrase “Provided also that in the case of” has been replaced with “Provided further that in the case of”.

This change is primarily structural, intended to harmonize the structure of the provisos in Rule 46.

Comparative Overview: Before and After Amendments

Provision Before After
Rule 47A (New) Not applicable (no such provision existed before) Time limit of 30 days for issuing tax invoice by the recipient under RCM, effective from November 1, 2024.
Omission of Second Proviso in Rule 46 Second proviso existed after clause (s) in Rule 46. Second proviso has been omitted to streamline the rule.
Amendment to Third Proviso in Rule 46 “Provided also that in the case of…” “Provided further that in the case of…” (structural change for better clarity)

Example: Impact of Rule 47A on Reverse Charge Invoices

Under the Reverse Charge Mechanism (RCM), the liability to pay GST shifts from the supplier to the recipient. With the introduction of Rule 47A, a registered person liable to pay tax under sub-section (3) or (4) of section 9 (i.e., under RCM) must issue a tax invoice within 30 days of receiving the goods or services.

For example:

  • Scenario: A company, XYZ Ltd., receives legal services from a lawyer, which falls under the RCM category.
  • Action Before: There was no specific rule governing the time frame for issuing the invoice by XYZ Ltd. under RCM.
  • Action After (Rule 47A): XYZ Ltd. must issue the tax invoice within 30 days of receiving the legal services.

This rule ensures that tax compliance timelines are clearly defined, preventing delays in invoicing and potential penalties.

Note : 

The CBIC’s introduction of Rule 47A and the amendments to Rule 46 aim to create a more structured and organized framework for invoicing under GST, particularly concerning the Reverse Charge Mechanism (RCM). These amendments have the following implications:

  1. Clarity for Businesses: The time limit for issuing invoices under RCM is now clearly defined, making it easier for businesses to comply.
  2. Streamlined Rules: By omitting the second proviso and refining the language in the third proviso, the CGST Rules are more concise, reducing potential confusion.
  3. Coherent Structure: The harmonization of language and structure in Rule 46 and the addition of Rule 47A contribute to a more organized legal framework under the GST regime.

These changes are expected to improve overall compliance and reduce legal ambiguities, benefiting both businesses and tax authorities.

CBIC_notified_the_Central_Goods_and_Services_Tax_Second_Amendment_Rules_2024
Understanding the New HSN Code Requirements for E-Invoices and E-Way Bills

Recently, the government issued Notification No. 78/2020 dated 15th Oct 2020, which introduced new requirements for taxpayers regarding the usage of HSN codes in e-Invoices and e-Way Bills. These changes aim to streamline the taxation process and ensure better compliance.

According to the notification, taxpayers with an Aggregate Annual Turnover (AATO) above Rs 5 Crore are now required to use a minimum of 6-digit HSN codes in their e-Invoices and e-Way Bills. On the other hand, taxpayers with an AATO below Rs 5 Crore must use a minimum of 4-digit HSN codes.

https://einvoice1.gst.gov.in/Others/MasterCodes

HSN codes, also known as Harmonized System of Nomenclature codes, are a globally recognized classification system for goods. They help in identifying and categorizing products for taxation purposes. The implementation of HSN codes in e-Invoices and e-Way Bills ensures transparency and facilitates the seamless flow of information between businesses and tax authorities.

By mandating the use of HSN codes, the government aims to simplify tax compliance, reduce errors, and enhance the efficiency of the overall taxation process. It enables tax authorities to accurately assess the tax liabilities of businesses and ensures that the right amount of tax is collected.

It is important for businesses to adhere to these new requirements and ensure that they use the appropriate HSN codes in their e-Invoices and e-Way Bills. Failure to comply with these regulations may result in penalties and other legal consequences.

In conclusion, the recent notification regarding the usage of HSN codes in e-Invoices and e-Way Bills is a significant step towards improving tax compliance and streamlining the taxation process. Businesses should familiarize themselves with these requirements and ensure that they implement the necessary changes to avoid any potential issues.